Soaring federal debt risks ‘fiscal crisis,’ agency warns

If the U.S. continues on its current trajectory, there is an increased risk for fiscal crisis — “‘that is, a situation in which the interest rate on federal debt rises abruptly because investors have lost confidence in the U.S. government’s fiscal position’.” Key drivers of the country’s long term budget woes include high interest costs, an aging population, rising healthcare costs, and greater federal spending on Social Security and Medicare. In any case, the House and Senate have still not made progress in forming a deal that might be be able to “avoid billions in mandatory spending cuts next fiscal year, increasing the likelihood of a scramble to extend current funding levels when the federal government runs out of money”. Read more here!